Ashok Leyland, flagship of the Hinduja Group reported a 57% increase in YoY quarter revenues in Q2 FY’22. The revenues for the quarter stood at Rs. 4458 crores as against Rs. 2837 crores in Q2 FY’21. Ashok Leyland’s domestic MHCV volume at 11988 nos. grew by 71% over the same period last year (6994 nos).
Ashok Leyland’s domestic LCV volumes for Q2 FY’22 at 13328 nos. is higher than Q2 FY’21 by 22% (10952 nos.). Export volumes (MHCV & LCV) for Q2 FY’22 at 2227 nos. is higher than Q2 FY’21 by 49 % (1491 nos.).
The company narrowed its net loss to Rs. 83 Cr. for Q2 FY’22, vis-a-vis a net loss of Rs. 147 crores in Q2 FY’21.
Net Cash generated for the quarter was Rs 1063 cr which was used to pay down debt. Net Debt now stands at Rs.3112 Cr in Q2 (Rs. 4175 Cr in Q1; debt equity 0.6 times).
The company saw strong demand for the AVTR range – India’s first modular truck platform, and this demand is expected to further improve, mirroring the expected increase in economic activity. In the LCV segment, the recently launched Bada Dost has been well accepted by the customers and the company is ramping up production in line with market demand. Going forward, last-mile connectivity demand propelled by e-commerce is likely to continue supporting ICV and LCV truck volumes. Other businesses like Defence and After-market continue to contribute strongly to the top line of the Company.
Switch Mobility, the EV arm of Ashok Leyland continues to grow its order book in India, UK and EU and has generated significant interest at COP26, being the first automotive manufacturer to commit to achieving net zero carbon in its operations for 2021.
Vipin Sondhi, MD & CEO, Ashok Leyland, said “The industry has seen signs of volume recovery in Q2 FY’22 over the same period last year, and we remain confident and optimistic about the future. The economy is showing signs of return to growth and we at Ashok Leyland will continue to build competitive products and organisational capabilities for future growth. Our focus will be to continuously improve our market share and gain it profitably and sustainably. Our global market expansion strategy is also in place, as we continue to focus on achieving our vision of being among the top 10 global CV makers. I am happy with the progress made on the EV front by Switch.
In addition, our continued focus will be on ensuring that the three pillars of ESG, Environmental, Social, and Governance are cornerstones of our business processes and help us achieve our sustainability agenda.”
Gopal Mahadevan, Director & CFO, Ashok Leyland, added, “We have been driving a portfolio approach to our business, and apart from our core business, our other businesses like Aftermarket, Power solutions, Defence and Customer Solutions, have contributed increasingly to our revenue. We have generated close to INR 1063 Cr in cash this quarter owing to improved working capital, and we will continue to focus on driving operational efficiency.”
The management is keeping a close watch on the global semi-conductor supply situation and commodity prices.